Innolux Corp (群創) said it is in talks with chip companies to jointly develop next-generation panel-level chip packaging technologies, as the company’s first fan-out panel-level packaging (PLP) project entered volume production in the second quarter.
The Miaoli County-based flat-panel display maker’s shipments of fan-out PLP products would continue through the first half of next year, Innolux chairman Jim Hung (洪進揚) told a news conference in Taipei.
The company has boosted its yield rate to more than 90 percent, he added.
Photo: CNA
The company estimated that its first fan-out PLP project would generate NT$100 million (US$3.17 million) in revenue.
After building its fan-out PLP credentials, Innolux aims to enhance its technological capabilities through cooperation with customers to develop redistribution layer (RDL) technology, a PLP packaging with finer line width, and 3D packaging through glass via (TGV) technology, Hung said.
“The RDL and TGV will be two of our focuses next year,” he said. “Numerous integrated device manufacturers have shown strong interest in developing the technologies with us by paying nonrecurring engineering fees.”
“As the technologies are considered as their future technology road maps, they are willing to invest in them,” Hung said.
Nonrecurring engineering fees are one-time costs incurred during the design, development and testing of a new product.
Innolux hopes to start collecting revenue from the fees from next year, Hung said.
In addition to the new fan-out PLP business, Innolux aims to advance its automobile display unit, CarUX Holding Ltd, to a first-tier vehicle-solution supplier next year.
CarUX completed a merger with Japan’s Pioneer Corp for ￥163.6 billion (US$1.05 billion) and is expected to become a tier-one supplier across multiple product platforms, leveraging Pioneer’s strengths in the automotive sound systems and human-machine interface software, the company said.
Pioneer has long-term partnerships with major Japanese and global automakers, including Toyota Motor Corp.
CarUX is expected to demonstrate its first new auto products and services during the CES show in 2027, after completing the third-stage of integrations with Pioneer, said Hung, who is also chairman of CarUX.
After the merger, CarUX is expected to scale up its revenue to NT$100 billion a year, Innolux said.
As for Innolux’s core flat panel display business, the fourth quarter would be the worst of this year, due to seasonal weakness, Hung said.
Shipments and panel prices would rebound in the first quarter of next year, with TV panels showing the strongest momentum, he said.
The company would continue streamlining its display capacity by retiring inefficient and low-value-added plants next year, he said.
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